US West to bundle fast services

Fueling the race to bundle telephone service, high-speed Net access, and
cable TV programming, US West
Communications said today that its estimated 25 million consumers will
be able to get all three services via copper phone lines by 2000.

Dubbed TeleChoice, the service will integrate digital TV and Net access using "variable digital subscriber lines," or VDSL. The
technology essentially splits existing analog lines into two pipes to
transmit voice down one channel and data traffic down the other.
TeleChoice Net access will ship data at 1 to 4 megabits per second, according to US West, which
is up to 70 times faster than a 56-kpbs modem.

After US West completes a trial in Phoenix this summer, the service will be rolled out to 14 Midwest and western states.

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Other features of US West's TeleChoice include: access to 120 cable
channels; customized stock market notifications for TV viewers; and
blocking technology that allows parents to screen TV and online content
they don't want their children to see.

"At last, people will be able to marry the convenience of television and
telephones with the power of the Internet," Solomon Trujillo, chief executive of US
West, said in a statement. "They'll even be able to see who's calling on
the phone [through Caller ID] and scan the Internet, all as they're
watching their favorite shows on TV."

Although US West is in the process of spinning off its cable division,
MediaOne Group, into a separate company, the huge telco's move today is an
effort to stave off its cable rivals' aggressive plunge into the
high-bandwidth Net access market.

The convergence of Net access and TV programming has spawned a new battle
field for telcos. Now they have to compete with the likes of America Online, as well as the
growing number of partnerships between companies such as Cox
Communications
and @Home, which are offering speedy Net service and an array of online
content sites via cable.

In addition, Microsoft's WebTV is expected to work
with DSL in the coming year. The software giant
is part of a high-tech consortium along with Intel and Compaq to push faster deployment of DSL
technology.

But US West's venture into digital TV could help it stay ahead of the
curve. Digital TV is expected to be available to some consumers by May of next year.
The Federal Communications Commission is pushing the
technology, which offers TV viewers a clearer picture and crisper
sound.

"I think we're going to see a lot more players offer these integrated
services," said Jill Frankle, a senior analyst for International Data Corporation.

"Both the cable companies are expanding their offerings and the telcos are
expanding their offerings, so they're converging to the same space," she
added. "The telephone companies need to come up with these offerings
quickly to see if they can get people to migrate to their services or they
will get hurt by the cable companies luring their customer base."